The European Union (EU) has added
Nigeria to countries on its “dirty money blacklist”.
According to Reuters, the EU said
the nations in this category pose a threat because of tax controls on terrorism
financing and money laundering.
Also added to the list which was
initially 16, are Saudi Arabia, Panama, Saudi Arabia, Panama, Libya, Botswana,
Ghana, Samoa, the Bahamas and four US territories of American Samoa, U.S.
Virgin Islands, Puerto Rico and Guam.
The other listed countries are
Afghanistan, North Korea, Ethiopia, Iran, Iraq, Pakistan, Sri Lanka, Syria,
Trinidad and Tobago, Tunisia and Yemen.
Other criteria were insufficient
cooperation with the EU on the matter and lack of transparency over the
beneficial owners of companies and trusts
The move has triggered criticism
from several EU states worried about their economic relations with the listed
states, notably Saudi Arabia.
The list now includes 23 jurisdictions,
with Bosnia Herzegovina, Guyana, Laos, Uganda and Vanuatu removed.
The 28 EU states have one month,
which can be extended to two, to endorse the list.
Vera Jourova, EU justice
commissioner, who proposed the list, was quoted as saying she was confident
states would not block it.
She said it was urgent to act on
the list because of the “risks spread like wildfire in the banking sector.”
She added the commission would
continue monitoring other jurisdictions not yet listed.
IMPLICATIONS
Apart from reputational damage,
inclusion on the list complicates financial relations with the EU.
The bloc’s banks would also have
to carry out additional checks on payments involving entities from listed
jurisdictions.
This comes at a time President
Muhammadu Buhari’s administration is insisting it has been committed to the
fight against corruption and money laundering.
In 2017, the president signed an
agreement with the United Arab Emirates (UAE), to give room for prosecution of
Nigerians who launder public funds to the country.
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